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Forex: Naira Rises As CBN Injects dollar

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The Naira grew against the dollar at the interbank market last week, after the Central Bank of Nigeria (CBN) raise the supply of the dollar by 50 per cent. The apex bank sold $300 million to end-users at N150 per dollar at the wholesale Dutch Auction System (WDAS) representing about $ 100 million increase over dollar sales in the past two months but short of $322.46 million demanded at the action.
The foreign exchange (forex) traders believed that the fact that CBN was able to meet the bulk of dollar demanded at its auction on Wednesday helped the naira to regain some ground at the interbank. They demand that dollars remained stronger, but expected some increase in supply of dollar by the CBN early this week.
The managing director and chief executive officer Digare BDC Limited, Mr Jelili Ajibola said that naira may further weaken if federal government implements the deregulation of the downstream petroleum sector of the economy.
His words: Nigerians should forget about deregulation of the oil sector as it will worsen our economy and devalue the naira more.
He said there are lots of interests in this campaign adding that the same politicians that are calling for deregulation would hoard petroleum products to increase prices in order to make abnormal profit when deregulation is finally implemented.
He also pointed out that with the relative stability in the Niger Delta, there is every tendency that oil production would increase thereby boosting the nation’s reserves.
He insisted that deregulation would further worsen the standard of living of the economically changed Nigerians.
Managing director and chief executive officer, Yomade BDC Limited, Usmand Suleiman said that deregulation would encourage inflation and that the poor would suffer the most. He stated that, even when workers salaries are increased, their pay would still not be able to cater for their needs. He added that, the prices of food stuff would skyrocket because fuel prices would definitely increase thereby affecting transportation fare.
He advised government to resuscitate the refineries and build new ones, provided social amenities such as stable power to encourage small and medium enterprise (SMEs) in the country.
Also speaking Adeboye Adenuga, managing director and chief executive officer, Dambis BDC Limited said that the reason for the appreciation of the naira over the dollar was due to falling demand for foreign exchange by the operator as they now find it difficult to access loan from banks.
Equally he added, that currency traders who used to sorrow from banks have started recalling facilities.
According to him, “The situation is affecting those with genuine business, as many of them no longer have access to naira to purchase foreign exchange for importation. This recent appreciation of the naira is due to the result of the CBN reform programmes in the banking sector.
He further wished that government should find a way of employing law enforcement agencies that would take charge in controlling the activities of the black marketers till sanity is restored in the forex business.
Mr Adeboye Adenuga added that the economy is not moving but people can no longer buy forex as much as before to import finished goods, noting that even those who travel to Dubai for trading purposes no longer do so, as many banks now find it difficult to support such trades. He advised that government should be able to develop local industries by improving infrastructure. Adenuga argued the aggregate supply for forex to the market is not enough also that there are lots of loopholes in the market which must be blocked to move the economy forward.

Aluka Anita O

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Farmer Cries Out Over Cattle Invasion

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A farmer in Aluu Community in Ikwerre Local Government Area of Rivers State, Mr Nwo Nna, has cried out over cattle invasion of his farmland and crops.
Nna made this known in a chat with newsmen in Aluu recently.
He said that the most worrisome aspect of the development was the neglect by the herders of the Anti-Grazing Law passed by the Rivers State House of Assembly.
The farmer who discribed such as vexatious and  provocative, appealed for intervention by relevant agencies in order to secure their future.
“I got to my  farm on Saturday morning only to see my vegetables, cassava, yam and the entire farm devastated by cows”, he said.
He  expressed regrets that his farm, which was not at the road  had experienced such  attack for the second time.
The farmer noted that it would have been a different ball game, if he had met the herders in his farm.
“The saving grace was that  I did not meet them. They should be called to order to avoid problems”, he said.
He also sought for urgent intervention of  the Rivers State Government, Myyetti Allah and other relevant authorities to warn the herders to keep off people’s farms in the interest of peace.
The farmer further explained that it was becoming a regular practice for herders to parade their cows along the roads, and such  cows  stray into farm lands and  destroy people’s means of livelihood.
While declaring that Rivers people are hospitable, the farmer warned stranger elements, who do not have respect for the laws of the land as well as terrorise other people’s means of livelihood, to take their lawlessness elsewhere.
Other farmers who also responded  called for the establishment of a system that monitors the  activities of herders.
According to them, it will enable those who take their cows into farms to be identified and adequately sanctioned in the event of any invasion by the cows.
This, they said will bring a lasting peace and as well  serve as a deterrent to others.

By: King Onunwor

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EFCC Blames Frauds In Banking Sector On Insiders

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The Economic and Financial Crimes Commission last Wednesday said most frauds in the banking sector were perpetrated by insider Information, Communication Technology employees.
Head, Cybercrime Section of the EFCC, Abbah Sambo, made the declaration at a national seminar on Banking and Allied Matters for judges in Abuja recently.
Sambo, who represented the EFCC Chairman, Mr Abdulrasheed Bawa, at the seminar, said that most banking sector frauds handled by the commission showed that bank employees aided the acts.
He also expressed regrets at the increasing rate of cybercrime in spite of efforts by the commission to tackle it.
Sambo observed that in years past, young people involved in cybercrime were not ICT savvy, but today, it was  ICT graduates that are the champions in perpetrating the crime.
He attributed the increase in cybercrime to moral decadence and peer group influence.
“The rate at which young men are perpetrating cybercrime is seriously alarming.
“When we arrest these criminals, one major reason they give for going into the crime is peer influence.Their friends are into it and they want to run with guys that drive the best cars and have the best girls in town”, he said.
He hinted that most times when  the criminals were arrested, a lot of  assets on them,  are  registered in the names of their parents.
“Cars in the names of their mothers and houses in the names of their fathers. There is a fundamental issue relating to decay in moral coverage in the society,’’ he said.
Sambo said that the greatest challenge in fighting cybercrime was the knowledge gap, and  noted  that the criminals were getting more sophisticated.
According to him, the criminals had the ability to talk to one another seamlessly by sharing knowledge, unlike law enforcement agencies.
“A lot of the people trying to combat the crime in the field tend to lack the drive because they do not have adequate training,’’ he said.
He stressed the need for adequate sensitisation and engagement with youths, especially from secondary school level to let them know the ills of crime.
The two-day seminar was organised by the Chartered Institute of Bankers of Nigeria in collaboration with the National Judicial Institution.

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SEC Frowns At Resurgence Of Ponzi Schemes

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The Securities and Exchange Commission has frowned upon the resurgence of Ponzi schemes and illegal fund managers in the country’s financial sector.
The Director-General of SEC, Mr Lamido Yuguda, made the observation of the development at an enlightenment workshop with the staff of the Federal Ministry of Finance, Budget and National Planning on in Abuja over the week.
Yuguda said  that the unlawful schemes had continued to enjoy massive patronage of the populace and remained a source of concern for regulators in the financial sector.
According to him, the commission was  poised to continue to apply measures and seek the cooperation of relevant stakeholders toward combating the activities of these Ponzi schemes.
He expressed regrets that the upsurge of the schemes had undermined the reputation of the financial markets and dampened investors’ confidence, among other things.
“SEC firmly believes that the country’s capital market can attain its potential if market operators and participants contribute their respective quotas to the growth”, he said.
He also explained that SEC was committed to always ensure and maintain an environment that was enabled by the appropriate regulatory framework, timely and affordable access to market.
“The commission is also committed to zero tolerance for infractions, heightened investor confidence and awareness, innovative product development and good governance practice”, he said
“There is the need to restore investor confidence and improve the participation of retail investors in the market.
He further pointed out that the demography of investors in the country’s capital market showed that the young population do not participate in the capital market, and only a few Nigerians invested in the capital market.
The situation, he said,  created a huge challenge to the market growth and the commission  and added that it was striving to change the narratives by instilling a fair, transparent and orderly market.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, represented by Mr Stephen Okon, Director Home Finance, urged investors to take advantage of the various initiatives in the market.

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